Synthetic-fuels group Sasol said on Monday it planned to respond in detail to the National Treasury on the windfall-tax report.
The group said it had conducted a preliminary study of the task team’s report on possible reforms to the fiscal regime applicable to windfall profits in South Africa’s liquid-fuel energy sector, with particular reference to the synthetic-fuel industry.
The Treasury task team’s 182-page report is wide ranging and covers many aspects, all of which should be given due consideration. These range from recommendations for regulatory changes through to a possible tax on windfall profits and an incentive arrangement for new investment in liquid-fuel production capacity.
“We will respond in detail to the National Treasury,” said Sasol general manager Bheki Khumalo.
“Sasol notes that the task team’s report must still be considered by National Treasury and the Department of Minerals and Energy.
“We welcome the invitation to engage with government,” said Khumalo. “We also welcome the definitive schedule to finalise this matter as this will provide certainty in the tax and regulatory regime,” he said, adding that Sasol looked forward to helping address South Africa’s transportation energy security needs. — I-Net Bridge